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Monday, June 4, 2018

Focus: Shapley value

Game theory is a
fascinating topic codifying and quantifying all sorts of interactions between
stakeholders in a game. The most popular setup is the prisoner's dilemma but there is much more to it. Today, we will cover the Shapley value as I recently stumbled across this original yet relatively unknown concept.

Problem at stake:

Example 1: In a salary
negotiation, the employee showcases his skills and what it brings to the
company. But how much are these skills worth ?

Example 2: In a Joint Venture, each founding company brings expertise. What’s a fair distribution of
the ownership/shares ?